President's views

During the second quarter, our business activities developed according to plan. Total turnover during the second quarter amounted to SEK 162.5 (125.0) million with an EBITDA of SEK 44,0 (32,4) million.

Comments on the result

The tanker markets are currently very weak. However, due to all our vessels being signed to time charter contracts, our operating result is according to plan. During the second quarter, the revenues from our contracts were much higher than those generated in the open market.

In the first six months, we reached a total EBITDA of USD 11.4 million and posted an operating result of SEK 46.5 million.

The financial net for the second quarter, SEK 6.2 million, reflects lower loan costs due to lower interest rates. Our investments generated income according to plan and we report a positive effect of a USD/SEK currency position of SEK 8.2 million.

The total financial net for the first six months is SEK –21.1 million. However, as reported earlier, this figure includes the complete write-down of the value of the fund share in the British hedge fund company Weavering Capital totalling USD 3.6 million. During the period, no new information emerged and, consequently, it is felt that there is little chance of the company recouping its investment.

Events after the end of the period
In July, it was decided not exercise the option to extend the charters of the two V-MAX tankers Stena Victory and Stena Vision. This means that both tankers will be redelivered to their owner, General Maritime, at the end of the year.
The decision is not expected to affect the forecast for the full year.

Future prospects
After several years with, at times, record-high markets, we are now facing the prospect of sharp downturns. Our assessment is that we are now entering a period, probably
several years, of weak tanker markets. The market downturn, which has come as no surprise, is due to a combination of concurrent factors. The weak global economy, which has resulted in a lower demand for transport, is, of course, one contributory factor. But the most important factor is a tanker fleet that has grown, and is growing, too rapidly as a result of far too many new orders.

The trend of the market is a reminder of the importance of a long-term approach and of having a stable economy and a strong financial position. At Concordia Maritime, we have been planning for the current market situation for several years. The whole fleet is signed to long-term charters, which means that we have secured our cash flows for some years. This will enable us to act swiftly when opportunities for new business deals arise in a weak market.

Forecast for 2009
The result before tax for the financial year 2009 is expected to reach SEK 45 million, which is equivalent to SEK 0.94 per share.